the vuca world rewards curiosity and a willingness to change...under vuca conditions, the rule is:...

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The VUCA world rewards curiosity and

a willingness to changeWith Next Generation LEAN, ConMoto makes companies fit for new thinking, new accountability and action. Leadership - EBIT Orientation - Agility - New Technolo-gies: Tomorrow’s success is built on these foundations.


2 ConMoto Consulting Group • The VUCA world

We all face a total game-changer: The world is VUCA!

Upheaval in global politico-economic rules, markets, and customer demands mean the corporate environment is changing drama-tically. Old business models no longer bring profit and are being replaced in rapid successi-on. We are experiencing disruptive innovation and product life cycles are getting shorter and shorter. Yesterday the HD TV impressed us, today it’s got to be 4K.

The automotive industry, and its related sec-tors, is facing its greatest ever challenge: the introduction of alternative powertrains to the mass market. Today customers are in the dri-ving seat and will benefit over the long term. It’s now about "individual mobility" rather than the car as a “product”. Sounds utopian? Maybe. In Stuttgart’s Mercedes Museum stands a stuffed horse. Next to it is a quotation from Wilhelm II. "I believe in horses," said the German Kaiser in 1905. "Automobiles are a passing phenomenon."

The world is VUCA: Volatile, Uncertain, Com-plex and Ambiguous. This means that business transactions are subject to constantly changing conditions. He who hesitates is lost in the VUCA world. Hesitant entrepreneurs and decision-makers who fail to give their employees new space for self-responsibility will come under considerable pressure from their companies. A changing environment opens up new oppor-tunities - companies just need to grab them. For this, the best intellectual prerequisites are quick

thinking, planning and decision making, and, physically, it’s about implementing ideas in de-velopment, production, logistics, maintenance and other indirect areas. Just like in sports, you need agility and a fitness programme.

Next Generation LEAN is the name of ConMoto’s fitness program. Next Generation LEAN extends the internal vision of the conti-nuous optimization of companies to the entire value-added network and also integrates en-vironmental factors such as market develop-ment and technological progress.

Under VUCA conditions, the rule is: quality is a given, while innovation and speed are the de-cisive factors for sustainable success. In this new thinking, LEAN stands for

Leadership and Organization

Execute for EBIT

gility

ew Technologies

LEAN


Leadership and Organization

Leadership and organizational culture are the critical success factors in the VUCA world: "Unity in Principles, Freedom in Exe-cution, Trust in People". The development of new ideas and willingness to change must be rewarded without losing sight of the medium- and long-term goals.

Leadership in an agile, result-oriented or-ganization means:

• setting an example by adopting a change-friendly attitude,

• recognizing and realize short-term opportunities,

• pursuing long-term goals consistently,• being open to new things.

In the future-oriented enterprise, leadership is not hierarchical, just carried out by solitary decision-makers at the top. Companies pur-suing successful continuous improvement make leadership and decision-making a team task. Cooperative leadership is particularly im-portant for transparent decision-making and clear communication. In increasingly horizontal structures, the leadership culture that thrives is based on common values and a shared vision of company success. Leadership under VUCA conditions means:

• giving employees a vision,• connecting with employees and external

stakeholders through active listening and open communication,

• being clear about expectations and reporting (problem solving) and

• acting quickly and flexibly under changing conditions.

If you want to change something, you need to feel secure and know you have the boss’s ba-

cking. That gives you freedom to think about new things without fear, and use the power of teamwork to implement solutions. Promoting accountability and personal responsibility be-comes the main goal of leadership.

The basic characteristics of an agile organiza-tional culture are:

• Querying motivation has to be at the forefront – Ask "Why do we do some-thing?" - and not immediately "How?". Or "What?"

• An organization can only change intel-ligently when its members are ready to share their knowledge: "swarm intelli-gence" is superior to individual intelli-gence because many contribute to the review and reformulation of strategies and actions.

• Coaching and personnel development are an integral part of the organization.

• Long-term goals are provided with clear milestones, so that progress can be veri-fied and tracked by everyone.

• Consistent allocation of responsibility.

eadership and OrganizationL

Execute for EBIT



Execute for

Furthermore, in the future, EBIT-driven com-panies will have a head start. This does not mean that bean counters rule in the next ge-neration LEAN. The bean counters will starve to death because they are so busy counting that change passes them by. But, of course, the company's result is key. Anyone who wants to benefit from market developments, new cus-tomer demand or technological progress must invest. Therefore, lean companies clearly have the advantage because they have more mo-ney in the cash register to invest in what really matters for the future.

Established practice, based on the well-known Lean methodology, creates the prerequisites for forward-looking action. Known as Shop-floor Management, this systematic control of key performance indicators and consistent tracking of implementation measures has brought company-wide transparency into all processes. This makes quantifiable decisions possible. Standards, standardized work and routine procedures free up time for teams to work on solutions and new ideas. This shortens development times, reduces costs and increa-ses profit margins.

Even in the VUCA world, one thing does not change: ultimately, only results count. Decisi-ons and actions are judged by the strength of the EBIT.

Agility


Agility is both customer and product ori-ented. The focus needs to be on custo-mer satisfaction. This only works with lean production, which can adapt its output quickly to changes in demand. Agility also means anticipation: anyone who knows today’s market well can also better assess the customer wishes of tomorrow. And anyone who is able to integrate new tech-nologies into their manufacturing system, without overlooking its suppliers, can beat the competition by satisfying the chan-ging needs of customers. This versatility, accompanied by a pragmatic view of pro-fitability, distinguishes the winners under VUCA competition conditions.

This is how agile companies work:

• The work is organized into teams that are multifunctional and without any strict demarcation between the line and the project. And, if things change, they can always be reorganized.

• The work and production processes are flexible so that they can be quickly adap-ted to changing requirements.

• The responsibility for the quick adjust-ment lies with the teams themselves.

The last point is the most important stimulus for more agility: Companies that strengthen self-responsibility and allow employees to organize themselves harness the workers’ knowledge and energy to find new ways of meeting customer needs. Targeted feedback through small closed loop control helps.

Hidden champions make it happen: They de-velop more ideas in a shorter time than others. They leave their comfort zone, question eve-rything, constantly check their solutions and adapt them or develop new ones. This requires the courage to fail – and for companies to learn quickly from their mistakes.

As an example, rather than processing se-quentially, agile companies increasingly make parallel ongoing developments and radically shorten product development times. Agile lea-dership means creating operating frameworks so that employees can develop their value-creating potential. In the tried and tested for-mula P = C + W + L, Power = Competence + Will + Licence must be allowed to stand directly to the right of the equal sign.

The agile organization is not about permission, but about empowerment, so that people’s abi-lity and determination can take effect. These are the aspects of corporate culture which se-cure and expand competitive advantage. The necessary operating framework also includes conventional aspects such as flexible approa-ches to pay and working hours.

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New Technologies

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Technological advances and the concept of Industry 4.0, or the Fourth Industrial Revoluti-on, the Internet of Things and Smart Manufac-turing, create opportunities for new business models and products and open up new custo-mer groups and markets. Industry 4.0 offers the opportunity to personalize products in bulk, at the cost of mass production. The production of individual prostheses by 3D printers and the countless new business models created by cloud computing are just two examples.

With the latest innovations we can capitalize on connectivity of different approaches such as Cyber-Physical Systems, Smart Data, Col-laborative Robots and Mobility. These and other technologies open up new possibilities in production control with completely new pro-duction rules. Intelligent, flexible factories are already a reality today. And these possibilities are multiplying rapidly every day.

However, new technologies only bring substan-tial advantages in the development of new busi-ness models and the realization of productivity gains if employees can associate technological progress with the company's purpose and the customer's demands. This requires not only a deep understanding of the production and va-lue creation processes, but also creativity.

At this juncture, the organizational culture is the deciding factor: Is effective change com-munication in place? Are people motivated, willing to act and eager to accept responsibi-lity? If that’s the case, new technologies make innovative leaps possible, providing efficiency levers and opening up market opportunities that were not available just a few years ago.

ew TechnologiesNew Technologies


People create the success of tomorrow. Make your business fit for the VUCA world now.

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Get started with ConMoto and Next Generati-on LEAN. Whether it is new management mo-dels, improved results, agile networks or new technologies - innovations are conceived and implemented by people. We help you on your individual journey to success.

Munich • Stuttgart • Bratislava • Campinas • Charlotte • Shanghai • St. Gallen • Vienna

Inspiring solutions. Implemented.

ConMoto Consulting Group GmbH Boschetsrieder Str. 69 81379 MunichGermany

[email protected] +49 89 78066-119 www.conmoto-consulting.com

Established in 1990, we are the manage-ment consultancy with clout when it comes to implementation.

In musical terms, "con moto" means "moved" or "with movement". We named ourselves ConMoto, because we are convinced that consulting is only successful, if it moves people to take action and results in verifia-ble improvements.

Our consultants have a wealth of mana-gerial experience and adopt an entrepre-neurial approach to create sustainable value enhancement for our customers. Using innovative methods and acting in a spirit of partnership, we systematically develop and implement solutions, effici-ently change structures and processes and successfully motivate people.

the vuca world rewards curiosity and a willingness to change...under vuca conditions, the rule is:...

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